India's Uno Minda drops as Kotak cuts rating, fair value

UNO Minda

05/09/2024 07:14

** Shares of Uno Minda  UNOI.NS  fall as much as 3.5% to
1,127.2 rupees 
    ** Brokerage Kotak Institutional Equities downgrades rating
on stock to "sell" from "add", cuts fair value to 970 rupees
from 1,000 rupees 
    ** Expects growth momentum to moderate on slowdown in
passenger vehicles (PV) segment, and says co derives 50% revenue
from PV segment
    ** Sees margins to remain rangebound due to foray in newer
segments, higher costs 
    ** UNOI's agressive capex plans and foray into EV component
segment will also weigh on margins as newer plants will incur
higher costs - Kotak 
    ** Analysts' avg rating on stock is "hold", median PT is
1,063 rupees - a ~9% discount on last close, per LSEG data 
    ** Including session's losses, stock up ~68% YTD 
    

 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))